THE battle for air filtration company Domnick Hunter intensified yesterday as a US bidder made an improved bid of £243.9m.

Domnick Hunter, based in Birtley, near Chester le Street, has backed an offer from Parker Hannifin worth nearly £2m more than an offer last month from Eaton Industries.

Parker Hannifin sparked the takeover battle at the start of last month when it offered £215.7m for the company, which makes filtration and purification products for a range of industries, including fizzy drinks producers.

Any takeover would provide a pay day for Domnick Hunter's chief executive, Colin Billiet, and chairman, Brian Thompson, whose combined shareholding is now valued at about £17m.

The offer of 680p a share is 57.8 per cent more than the price of Domnick Hunter shares before the first takeover approach.

Parker Hannifin, an industrial products group employing 50,000 staff, said a tie-up would be positive for Domnick Hunter's workforce of 1,800.

Eaton, which previously made an offer worth £242m, is hoping to create a leading supplier of filtration, separation and purification products by combining Domnick Hunter with its recent acquisition Hayward.